A stock currently selling for $60 has a historical standard deviation of .25 and a coefficient of correlation with the market portfolio of .4. Over the same period, the historical standard deviation of the market portfolio was .16. Investors anticipate dividends of $2 per share in one year at which time the stock can be sold for $65. Determine the following for the stock if the current Treasury Bill rate is .05 and the required return on the market portfolio is 0 .12:

a. The stock Beta.

b. The required return of the stock.

c. The discount rate to be associated with cash flows from the stock.

d. The present value of cash flows associated with the stock.

e. Whether the stock constitutes a good investment.